The Chinese government, in a pioneering move, has unveiled a new blockchain infrastructure platform spearheaded by the Conflux Network.
Named the “Ultra-Large Scale Blockchain Infrastructure Platform for the Belt and Road Initiative,” this project is designed to serve as a foundational public blockchain tailored for cross-border applications.
An announcement on April 1 by Conflux Network highlighted the platform’s ambition to foster cross-border cooperation along the Belt and Road Initiative, aiming to “create a public blockchain infrastructure platform” that supports the development of applications facilitating international collaboration.
Conflux Network, recognized for its multichain blockchain ecosystem, operates under the guidance of the Conflux Foundation, also known as the Shanghai Tree-Graph Blockchain Research Institute.
This initiative marks a significant stride in blockchain technology, especially within the context of China’s traditionally restrictive stance on cryptocurrencies.
Historically, China has exhibited a stringent approach toward the cryptocurrency market, intensifying its regulatory measures since 2017, including the shuttering of Bitcoin exchanges.
However, despite these restrictions, a considerable portion of Chinese investors continues to engage with cryptocurrencies.
A report by Kyros Ventures in December 2023 indicated that 33.3% of Chinese investors hold a significant amount of stablecoins, ranking just below Vietnam.
This persistence underscores the innovative methods employed by Chinese traders to navigate the constraints imposed on crypto trading.
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The Chinese government’s ban on crypto trading and mining in 2021, along with its prohibition of offshore exchange services within its borders, significantly impacted the global cryptocurrency landscape, particularly diminishing China’s once-dominant role in Bitcoin mining.
Nonetheless, amid these regulatory challenges, China is preparing for a comprehensive overhaul of its Anti-Money Laundering (AML) laws, set to encompass cryptocurrency transactions.
This amendment, the first major update since 2007, seeks to introduce more stringent measures against crypto-related money laundering activities.
This development comes in the wake of reports highlighting the misuse of “virtual currency trading platforms” in facilitating substantial underground banking operations, emphasizing the government’s intent to tighten control over the digital currency sphere.
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